8 Tips to Consider When Applying for a Mortgage
Do you love Arizona and are looking to make it your home? Once you find your dream house, keep those dollars local by choosing an Arizona lender to help you buy that home! At our local banks and credit unions, loan approvals and other key decisions are made here by people who live in the community, have face-to-face relationships with their customers, and understand local needs.
Our friends at Vantage West Credit Union put together this helpful guest post to help folks figure out how to navigate the mortgage process -
If you’re in the market for a new home, you might have noticed that real estate values are beginning to appreciate and mortgage rates have started to move. But there are still plenty of reasonably priced homes available at historically low rates.
When it comes time to find a mortgage, choosing the right lender is just as important as finding the right home. Beyond rate and terms, there are other important factors you might also want to consider. For instance, when you choose to work with a local lender, you are also doing your part to recycle money back into the local economy.
Here are some helpful tips offered by one local lender, Vantage West Credit Union, that might come in handy when applying for your mortgage:
1. Ensure you have good credit history with an established pattern of paying bills on time.
2. The credit score your lender sees may be different from what you’re seeing. They contact the 3 credit bureaus and may have more information than the report you can get on your own.
3. Get prequalified as soon as possible. This will give you an idea of how much you may prequalify for, what you can afford, and the monthly payments you are comfortable with.
4. Avoid taking out new debt. Doing so may negatively impact your debt-to-income ratio.
5. Respond promptly to any requests from your lender.
6. Don’t change jobs. If unavoidable, be sure to inform your lender ahead of time since new employment verification, pay stubs, and other documents may be required.
7. Have money in reserve. Depending on the loan program you apply for, some lenders may require two months’ worth of mortgage payment in reserve to cover unforeseen expenses.
8. Don’t move money around. Lenders will want to see new bank statements tracing “to” and “from” transactions to ensure you still have the funds to meet your loan obligation.
If you have additional questions about mortgages, we invite you to call 520.751.7072 or 800.888.7882 or visit vantagewest.org/homeloans.
Subject to approval. Certain restrictions may apply. Federally insured by NCUA. NMLS# 485751